Sanlam has welcomed the decision by shareholders to approve the package of strategic empowerment transactions, which was announced on 31 October 2018.

Shareholders voted in favour of the resolutions as follows:

Special resolution number 1: Specific authority to the Company to issue securities for cash (98.88%);

Special resolution number 2: Specific authority to provide financial assistance to a related party for the purpose of subscribing for securities (98.03%);

Special resolution number 3: Specific authority to provide financial assistance to a related party for the purpose of, among others, acquiring securities in subsidiaries of the Company (97.43%); and

Ordinary resolution number 1: To authorise any director of the Company, and where applicable the secretary of the Company, to implement the aforesaid special resolutions (97.98%).

Says Sanlam Group Chief Executive Officer, Mr Ian Kirk: “This is a very strong vote of confidence that will enable management to forge ahead with the implementation of the transactions. We believe these will be good for the company and for the country, enhancing our empowerment status and our long-term growth and sustainability while we continue to contribute to South Africa’s shared prosperity. The Board also took note of certain governance concerns raised in today’s climate of heightened governance standards and transparency and will continue to engage and improve on this as we continue to drive our strategy.”

Together with Sanlam’s acquisition of SAHAM Finances, the series of transactions will maintain the Group’s position as a leading financial services company across Africa. The transactions will also strengthen the competitive position of Sanlam’s South African operations by broadening the base of black ownership and strengthening the relationship with the Group’s longstanding empowerment partner, Ubuntu-Botho (UB).

Further details on the implementation of the transactions will be announced in 2019.

Sanlam announced in October that it intended to issue shares constituting, in aggregate, 5% of the enlarged issued Sanlam ordinary shares (net of treasury shares) to a new broad-based group of empowerment shareholders and UB.

The Group also planned to provide a R2 billion facility to UB or its subsidiaries to support the execution of Sanlam’s empowerment strategy. This would be achieved by enabling UB to acquire, directly or indirectly, an interest in specific operating subsidiaries of the Sanlam Group and would facilitate investment by UB in financial services companies that will be complementary to the broader Sanlam Group’s vision and strategy.

In addition to providing the UB facility, there is an in principle agreement that Sanlam or a wholly-owned subsidiary of Sanlam will, subject to definitive agreements, acquire a 25% stake in African Rainbow Capital Financial Services from African Rainbow Capital.